economy 10 June 2026 Daily Monitor (Uganda)
Uganda Approves Shs734 Billion for Solar-Powered Irrigation Expansion
Parliament has greenlit a loan of approximately Shs734.2 billion to fund the second phase of a national solar-powered irrigation project, aiming to boost agricultural productivity in rural areas. Source: https://www.monitor.co.ug/uganda/news/national/-parliament-approves-shs734b-for-solar-powered-irrigation-systems-5491822
Lawmakers in Uganda’s Parliament have approved a significant financial injection of Euro 168,976,354 (approximately Shs734.2 billion) to advance the nation’s solar-powered irrigation systems project. The approval, tabled by Finance Minister Henry Musasizi, allows the government to borrow the funds from UK Export Finance and Citi Bank for Phase II of the initiative.
The ambitious project aims to establish 427 new irrigation systems across the country. The primary objective is to enhance rural incomes by increasing agricultural production and productivity, with a specific focus on supporting coffee cultivation through irrigated farming.
Official projections indicate that this phase will directly benefit around 2,562 households, translating to approximately 11,785 individuals. The loan is earmarked to finance the budget for the upcoming fiscal year, FY 2026/2027, which commences on July 1st.
While the funding has been approved, concerns regarding accountability for the first phase were raised. The Leader of Opposition, Joel Ssenyonyi, stressed the importance of transparency, and MP Hassan Kirumira highlighted issues with incomplete and non-operational projects from Phase I. However, the Finance Ministry asserts that Phase I has seen over 99% physical completion, with 434 systems developed nationwide, delivering tangible economic benefits and enhancing water security for hundreds of thousands of Ugandans.
According to the Ministry of Finance, Uganda’s total debt stock, estimated at USD 34.86 billion or 52.7% of GDP by the end of December 2025, remains within sustainable limits. The Ministry assures that this new borrowing is factored into current debt sustainability analyses and the medium-term fiscal framework, with measures in place to manage and reduce debt levels through revenue mobilization and controlled expenditure.